Lottery attempts to keep online sales alive

ST. PAUL – Minnesota lottery officials have been meeting daily with state legislators to try to broker a deal to continue selling scratch-off tickets online.

Some lawmakers are perturbed that the lottery began selling the tickets online and at gas pumps without their approval. A measure to stop the online and gas pump sales is awaiting a final vote in the House, where it has plenty of support.

"I am hoping we can we reach some kind of common ground," state lottery director Ed Van Petten said. "I think there is a chance that people will finally look at the facts."

Some legislators view the additional sales as an unauthorized and dramatic expansion of state-backed gambling. DFL Rep. Jim Davnie tells the Star Tribune the lottery is aggressively recruiting the next generation of gamblers.

"I don't think that is the purpose of government," Davnie said. "I don't think that should be our role."

Van Petten said he's not required to get legislative approval for the Internet or gas pump sales, since they're the same tickets that are offered at convenience stores.

The lottery has become a rare issue that is putting Democratic legislators at odds with Gov. Mark Dayton, who appointed Van Petten and who wants the voter-approved lottery to succeed. Lottery proceeds go into local environmental and conservation funds and help fund the state budget.

Dayton said legislators are trying to micromanage a state agency that is under control of the executive branch.

"Why would we want to hamstring his ability to make the lottery as successful as possible?" Dayton said of Van Petten.

The multi-billion-dollar tribal gaming industry has kept a close eye on the state lottery developments. Tribal leaders are also concerned about the online scratch-off sales without legislative oversight and are protective of tribal casino revenue.

"The new scratch-off sales are a little bit of a stretch," said John McCarthy, executive director of the Minnesota Indian Gaming Association. The possibility that the lottery could expand further, he said, "makes us say, 'Hold on, can they do all these things?'"